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By Ryan Galloway

For most Americans, retirement by age 65 was always a matter of course. It was supposed to be the culmination of a career, the American Dream's final act. But as Baby Boomers—the 79 million people born between 1946 and 1964—approach retirement age, many are discovering that reality doesn't quite match their expectations.

A Changed Landscape

A 2013 study conducted by Northwestern Mutual found that just 56 percent of Americans were financially prepared for retirement. Those who are unprepared often plan to continue working into their 60s, 70s, and even 80s. But while working longer is an increasingly pervasive strategy, it’s one that rarely works.

"Many people in the pre-retirement age bracket lost significant wealth during the housing crisis and recession," said Angela DiCastri, director of retirement markets at Northwestern Mutual. "There's also the issue of 'boomerang children.' These are young people who have moved back in with their parents after college or early in their careers due to financial hardship. Very few pre-retirees had planned on supporting children again, so this becomes a significant and unexpected financial burden."

With savings to rebuild and dependents to support, many pre-retirees turn to working longer as a solution. However, DiCastri points out that the idea of working longer to make up for unexpected financial burdens may not be realistic.

A study conducted by the research group LIMRA shows that approximately half of the people they surveyed retired before they had expected to. Even among people who retired in their mid to late 60s, a majority indicated they retired earlier than planned. In fact, half of those who retired earlier than planned did so involuntarily—because of health problems or layoffs.

The bottom line: Few of those who plan to keep working actually do. The Northwestern Mutual study quoted above also found that, on average, pre-retirees say they plan to retire at age 68. However, the mean average for those already retired is 59.

You Can Never Be Too Prepared

Without deferred retirement as an option, what should Baby Boomers do to ensure financial stability in their later years? The answer, DiCastri says, is “prepare.”

"Budgeting should be your first priority,” DiCastri said. "Having a plan in place for aggressive saving during your prime working years is crucial. You should also have a clear picture for where your money is going to go during retirement. Make sure that your necessary expenses are covered by guaranteed income streams.”

A critical part of the budgeting process is making sure that you and your spouse or partner are aligned on how your retirement income will be allocated.

“It’s not uncommon for couples to reach retirement with completely different ideas about how their money will be spent,” DiCastri noted. “One may plan on frequent expenditures on things like golf or travel, while his or her partner planned on a much more frugal lifestyle. Developing a shared vision for retirement is absolutely crucial.”

DiCastri also cautions against focusing solely on building a nest egg. “A lot of people save with a specific dollar amount in mind, thinking that if they can just save that amount, then they'll be fine. But they're not thinking about how using that amount as income will affect their tax status."

Establishing a plan to cover financial risks and provide for a secure retirement can be daunting, Still, DiCastri said, many people choose to go it alone. She sees this as a fundamental error in retirement planning. “Working with a financial advisor and an accountant is absolutely critical, and the earlier you start, the better. They can expose you to a broader range of saving options and help you determine the best strategy for your retirement.”

The road to retirement may have changed, but with proper planning and expert guidance, you can still have the retirement you always expected. Besides, as DiCastri pointed out, “No one ever wants to be the ‘last man standing.’”

Ryan Galloway is a writer and editor based in New York City. He covers multiple aspects of business, technology, and energy.